Forex Pros – Corn futures rallied for a sixth day on Thursday, while wheat prices surged to the highest level in three months as adverse weather in key growing regions in the U.S. continued to threaten crop production.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD7.5562 a bushel during European morning trade, gaining 0.7%.
It earlier rose to USD7.5938 a bushel, the highest price since April 28.
Meanwhile, wheat for July delivery jumped 1% to trade USD8.2788 a bushel, after earlier rising to USD8.3438, the highest price since February 22.
Weather service provider AccuWeather said that the U.S. Great Plains and Ohio Valley region were expected to see more rain this week, while heavier precipitation was forecast to return to the U.S. Midwest between May 21 and May 23.
Heavier-than-normal rains have left fields too muddy to support heavy equipment used in seeding, adding to concerns that U.S. farmers would delay planting of crops, potentially threatening yields and reducing the quality of the harvest.
The U.S. Department of Agriculture said in a report on Tuesday that approximately 63% of U.S. corn crops were planted as of May 15, lower than the five-year average of 75% for this time of year.
Plantings of U.S. spring-wheat was 36% complete as of May 15, compared with the average of 76% for the previous five years.
The U.S. is the world’s leading exporter of corn and wheat. Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010. Wheat was fourth at USD13 billion, behind soybeans and hay.
Meanwhile, weakness in the dollar also supported prices. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21% to hit 75.42.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, soybeans for July delivery added 0.58% to trade at USD13.8550 a bushel during European morning trade.
ForexPros.com
